Digital asset-related crimes, such as investment fraud, require new investigative tools and stronger collaboration in addition to traditional law enforcement methods.
The Korean National Police Agency (KNPA) and Binance work closely to leverage blockchain transparency, close cooperation, and specialized training to track and recover illicit actors’ crypto assets.
This partnership improves real-time investigations, cross-border cooperation, and victim support, setting a model for effective crypto crime enforcement.
As cryptocurrency continues to grow in popularity and adoption, it brings both opportunity and risk. While the blockchain provides an open, immutable ledger of every transaction, it also attracts bad actors who exploit its speed, pseudonymity, and global reach. In South Korea, the most common type of virtual asset crime is investment fraud – a variety of schemes that part victims from their money under the guise of attractive investment opportunities, leaving them confused and with little legal recourse.
Traditional investigative methods are no longer enough to catch cybercriminals. The fast-paced and borderless nature of blockchain-based crimes requires modern tools, real-time collaboration, and strong public-private partnerships. An excellent example of an effective partnership is how the Korean National Police Agency (KNPA) and Binance are working together to combat crypto-related crime.
Why Centralized Exchanges Are Key to Fighting Crypto-Related Crimes
Crypto-related crimes differ significantly from more “traditional” cybercrimes and require new investigative tools and stronger collaboration. Normally, criminal activity outside of the blockchain space leaves limited digital evidence. Conversely, offenses that touch public distributed ledgers leave a permanent and transparent trail of data behind. Every transaction is recorded on-chain, which gives law enforcement a unique opportunity to trace the flow of illicit funds.